When a U.S. firm sells a good abroad for, say, 100 euros (assume $1=1euro), U.S. net exports increase by $100. These $100 in exports can be accounted for as $100 increase in capital outflow because ________
A) if the 100 euros are kept in the foreign bank, the U.S. firm is giving a loan to that bank
B) if the U.S. firm uses the 100 euros to buy a share of stock in a foreign firm, the firm is supplying U.S. capital to that foreign firm
C) if the U.S. firm uses the proceeds to build a new factory in that country, it is supplying U.S. capital to that country
D) all of the above
E) none of the above
D
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If the Department of Defense hires only volunteers, the armed forces will be staffed predominantly by people who
A) are incompetent. B) are patriotic. C) care principally about money. D) see the armed forces as their best opportunity. E) want to serve more than they want to make money.
GDP is most often discussed using ________ figures, although it is typically calculated ________.
A. quarterly; annually B. annual; monthly C. annual; quarterly D. quarterly; monthly
If a severe natural disaster reduced the population of a city, one would expect a natural monopoly to:
A. raise prices. B. split into two firms. C. increase sales. D. merge with a competitor.
Every transaction concerning the exportation of goods from the United States constitutes a
A) supply of foreign currency with no effect on the market for the dollar. B) demand for dollars with no effect on markets for foreign currencies. C) supply of foreign currencies and a demand for dollars. D) demand for foreign currencies and a supply of dollars.